The Carlyle Group has closed its fourth distressed and special situations fund at $2.5bn.

Carlyle Strategic Partners IV reached its hard cap and is more than three times larger than its predecessor. The firm’s third distressed fund closed in 2013.

The fund will be deployed across the US, Europe and Asia in companies experiencing financial, operational or cyclical distress. It can invest throughout the capital structure, from bank loans and public debt to equity.

The unit is led by Shary Moalemzadeh in New York and Ian Jackson in London.